How does accurately calculating 'landed cost' impact pricing strategy on Amazon.co.jp?

Accurately calculating 'landed cost' profoundly impacts pricing strategy on Amazon.co.jp because it determines the true cost of bringing a product to the Japanese market, enabling sellers to set competitive prices while maintaining profitability. 'Landed cost' encompasses all expenses associated with importing and delivering a product to the customer, including the product's purchase price, shipping costs, import duties, 'Shohizei' (consumption tax), insurance, and any other fees incurred during the import process. Accurately calculating this ensures that a seller is aware of the minimum price at which they can sell the product without losing money. If the landed cost is underestimated, the seller may set a price too low, resulting in losses on each sale. Conversely, if the landed cost is overestimated, the seller may set a price too high, making the product uncompetitive in the Japanese market. For instance, a seller importing electronics from China must factor in import duties specific to that product category, shipping fees from China to Japan, 'Shohizei' levied on the imported goods, and any inspection or handling fees. By accurately adding all these costs to the product's initial price, the seller can determine the optimal price point to maximize profits while remaining competitive on Amazon.co.jp. Failing to account for these factors can lead to unsustainable pricing strategies and business losses.